ICBC Rises 1.7% as China Holds 3.00% Loan Rate Amid CNY340 Billion Lending Drop

1 articles · Updated · ts2.tech · Aug 19

ICBC gained 1.69% to CNY7.80 in Shanghai after Beijing kept key lending rates unchanged, a move investors read as support for bank profitability rather than a sign of stronger credit demand.
The one-year loan prime rate was expected to stay at 3.00% and the five-year at 3.50% for a 15th straight month, helping preserve margins after ICBC's net interest margin edged up 1 basis point to 1.41% in Q2.
July lending data underscored the pressure: new yuan loans shrank by a record CNY340 billion versus a Reuters poll forecast for a CNY45 billion increase, while outstanding loan growth slowed to an all-time low of 5.1%.
Banks are leaning on cheaper funding to offset weak borrowing, with about CNY54 trillion of time deposits maturing this year and analysts estimating lower rollover costs could lift sector net interest margins by roughly 12 basis points.
The rally was broad across China's big four banks, but investors are still watching August credit data, fiscal support and ICBC's interim results for evidence that earnings can hold up if property weakness and soft loan demand persist.